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World Bank considers $500 million fund to NEPCO

NEPCO
(Photo: Jordan News)
AMMAN— The World Bank is considering the approval of a new project proposal for Jordan that aims to enhance the reliability of electricity supply, financial viability, and governance of the National Electric Power Company (NEPCO) through a $500 million fund, according to Al-Mamlaka TV.اضافة اعلان

The proposed project under the World Bank consideration, is in the design phase and is expected to be approved by February 2022. It is designed to contribute to energy sector reforms through ensuring equitable cost distribution, efficient resource management, and increasing energy security through the diversification of energy sources. 

"The electricity sector in Jordan accounts for about 20 percent of public debt, with accumulated debt by NEPCO reaching about $7.18 billion," according to project documents, which noted that "the refugee crisis over the last decade and the COVID-19 pandemic have further restricted national efforts to address this debt".

“The Jordanian energy sector also experienced setbacks in 2020 due to COVID-19 lockdowns, where it witnessed a decline in energy sales to business sectors, offset by an increase in household energy consumption and a decline in revenue collection, as the Kingdom tried to recover from the pandemic.”

The proposed project also focuses on assisting NEPCO in achieving viability and sustainability, as well as to reduce disruption and improve the reliability of the transport network through rehabilitation and modernization of existing facilities that are not expected to have a significant negative social impact or require the acquisition of land, according to the project proposal.

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